Discover the industrials stocks with the biggest stock buyback authorizations last month, May
Buybacks
June 18, 2023
Trex Company, Inc., the leading brand in composite decking and outdoor living products, reported solid first quarter 2023 results in line with expectations. Despite a decrease in net sales compared to the previous year, Trex demonstrated strong margins and profitability, driven by its industry-leading brand, efficient manufacturing, and strong relationships with channel partners. Trex Company remains confident in the outdoor living category's ongoing appeal and its position as a market leader. Recent product innovations have further strengthened Trex's market leadership and stimulated demand. In light of its financial strength and positive growth prospects, Trex's Board of Directors authorized a new stock repurchase program of up to 10% of the company's outstanding common stock, reflecting their confidence in Trex Company's long-term outlook. Trex anticipates second-quarter revenue of $310 million to $320 million and reaffirms a 26%-27% EBITDA margin for FY 2023, indicating positive prospects for the stock and its buyback initiative.
WillScot Mobile Mini Holdings Corp. ("WillScot Mobile Mini" or the "Company"), a leading provider of innovative flexible space and storage solutions in North America, recently announced that its Board of Directors has authorized a stock buyback program of up to $1.0 billion, effective May 3, 2023. The decision to authorize this buyback aligns with WillScot Mobile Mini's capital allocation framework, which focuses on several key areas. Firstly, they prioritize funding their organic growth trajectory, supported by a $1 billion portfolio of unique growth opportunities. Additionally, they actively seek out smart and highly accretive acquisitions to fuel expansion. Lastly, WillScot Mobile Mini aims to maintain leverage and deliver returns to shareholders. In the past year, they successfully repurchased 22.4 million common shares for $895 million, resulting in a 9.5% reduction in economic share count and providing significant economic returns to their shareholders. The Board's proactive decision to replenish the buyback authorization underscores their commitment to the current capital allocation strategy.
MYR Group, led by President and CEO Rick Swartz, is dedicated to maximizing shareholder value through strategic capital deployment. MYR Group's authorization of a stock buyback program reflects their confidence in the market opportunity and long-term growth strategy. With a robust balance sheet, MYR Group aims to enhance shareholder value through organic growth initiatives, strategic acquisitions, and the repurchase of common stock. This buyback program signals MYR Group's commitment to leveraging their financial strength for the benefit of shareholders, providing an optimistic outlook for the stock and its buyback prospects.
Ryerson Holding Corporation (RYI), a leading industrial metals processor and distributor, recently authorized a stock buyback program. They repurchased 1.5 million shares from an affiliate of Platinum Equity in a secondary public offering, increasing the free float to 67%. This move aims to create value for shareholders and enhance liquidity in the market. Additionally, Ryerson announced an increase and extension of their share repurchase program by approximately $80 million to $100 million through April 2025. Ryerson Holding's decision to authorize the stock buyback may have been influenced by their strong financial performance in the first quarter of 2023, which included achieving a net income of $47.3 million and generating operating cash flow of $80.4 million. Furthermore, Ryerson's commitment to improving their capital structure and integrating new acquisitions into their service center network reflects a strategy to invest smartly and enhance their capabilities. With positive operating results and a focus on delivering excellent customer experiences, Ryerson's stock buyback prospects appear promising, indicating their confidence in Ryerson Holding's future growth.
Graham Holdings Company (GHC) recently made an important announcement, stating that its Board of Directors has granted authorization for the acquisition of up to 500,000 shares of its Class B common stock. Graham Holdings, known for its diverse range of media and education-related businesses, has not specified a maximum purchase price or timeframe for these transactions. As of April 28, 2023, there were 3,778,767 Class B shares outstanding. This stock buyback authorization signifies Graham Holdings' confidence in its financial position and future prospects. It may have been influenced by recent positive developments or news related to Graham Holdings Company, reflecting their desire to capitalize on potential stock value appreciation. Such a buyback has the potential to boost investor sentiment and provide additional value to shareholders, making it an intriguing prospect for those interested in GHC stock.
Gates Industrial Corporation plc (GTES) recently announced a secondary offering of 22,500,000 ordinary shares by certain selling stockholders affiliated with Blackstone Inc. The selling stockholders have granted the underwriters a 30-day option to purchase an additional 3,375,000 ordinary shares. While Gates itself is not offering any shares and won't receive proceeds from the sale, it has authorized a share repurchase program. Gates Industrial has entered into a contract with Citigroup Global Markets Inc. to repurchase $250 million of ordinary shares at the offering price. This repurchase is expected to occur promptly after the offering's closing and is conditional upon it. The announcement reflects Gates' strategic move to optimize shareholder value and potentially take advantage of favorable market conditions. It demonstrates Gates Industrial's confidence in its own stock and its commitment to enhancing shareholder returns. Investors should keep an eye on the stock buyback's impact on Gates Industrial's financials and market sentiment, as it may contribute to increased demand for shares.
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